US fast food chain McDonald’s is likely to move NCLAT this week against a National Company Law Tribunal’s (NCLT) order that reinstated Vikram Bakshi as Managing Director of its Indian joint venture Connaught Plaza Restaurants Pvt Ltd (CPRL), as per a PTI report.
With no signs of resolution of the conflict between the company and its JV partner in sight, 43 outlets of the fast food chain in the Capital continue to remain closed.
According to PTI, which spoke to people in the know of the development, McDonald’s is preparing to move the National Company Law Appellate Tribunal (NCLAT) this week against the NCLT order of July 13.
An apex corporate tribunal had, in July this year, restored Vikram Bakshi as Managing Director of Connaught Plaza Restaurants Pvt Ltd. The decision was expected to pave the way for the reopening of over 40 McDonald’s outlets in Delhi after an almost fortnight-long closure.
The NCLT decision assumes significance as Connaught Plaza Restaurants is the 50:50 joint venture (JV) between McDonald’s India Pvt. Ltd. (MIPL) and Bakshi.
The company runs McDonald’s outlets in North and Eastern part of India. Bakshi was removed as MD of the company in August 2013.
On its part, MIPL said: “We respect the decision of the NCLT. We are examining the judgement and exploring our legal options in the matter.”
Thursday’s decision is expected to aid the company in reopening of over 40 of its restaurants in the national capital, as certain regulatory requirements to be fulfilled by an MD can now happen.
On June 29, the company had temporarily suspended operations of more than 40 of its restaurants in Delhi after the “Eating House Licences” of a number of outlets expired.